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What’s The Best Way to Move My Rental Income To A Retirement Account? 

Toby Mathis Esq | Tax Planning & Asset Protection
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Moving rental income into a retirement account takes a little out-of-the-box thinking. To do that, you want to shift rental income to a C-corp.
With this strategy, your properties are housed in LLCs, which are all held by a Wyoming LLC for invisibility, and you pay management fees to a separate C-corp, where you can pay yourself a W-2 wage, or the corp can sponsor a solo 401(k).
This approach takes money that would otherwise flow to you as passive income-and flows it to a C or S-corp, where it can be expensed or paid out as active income and fund a 401(k).
Watch the whole video to understand exactly how you must change the nature of the income that’s coming from rental to active income.
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Toby Mathis, Esq. is the best-selling author of Infinity Investing: How the Rich Get Richer And How You Can Do The Same. Toby is a tax attorney and founded Anderson Business Advisors, one of the most successful law, tax, and estate planning companies in the United States. Learn more at aba.link/tobyaba
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#ira #rents

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26 авг 2024

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Комментарии : 12   
@gatesdabeast
@gatesdabeast 7 месяцев назад
love this channel
@Chris.Brisson
@Chris.Brisson 7 месяцев назад
Traditional 401(k) contributions are not deductible, per se; that money does not appear as income at all. For example, if you have $50,000 compensation but contribute $30,000 of that into a traditional 401(k), your W-2 gross income is only $20,000 (no line item for a deduction comes to play). However, somebody in this person's position, who has no immediate need of the income, might prefer to contribute to a Roth 401(k) to enjoy the tax-free growth and to avoid Required Minimum Distributions in later years.
@TobyMathis
@TobyMathis 7 месяцев назад
I agree on the employee contribution, but it is definitely a deduction for the company contribution (the 25%). I tend to agree on the ROTH comment as well. On the $30k, it depends on the age of the employee. 50+ - yup. Under 50, you can exclude $23,000k in 2024 ($22,500 in 2023). Appreciate the comments - for sure - and get what you are saying 100%.
@Chris.Brisson
@Chris.Brisson 7 месяцев назад
@@TobyMathis oh, I see what you're saying. Your S-corp takes the company contribution as a business expense deduction.
@victorscarpulla2478
@victorscarpulla2478 7 месяцев назад
Thanks for teaching me something new.
@willmallory9085
@willmallory9085 7 месяцев назад
Excellent question.
@shofarhagadol4698
@shofarhagadol4698 7 месяцев назад
What about purchasing an apartment building from the Solo401k? I heard that you need to have the Solo401K trust set up a Special Purpose LLC , and that entity would own the apartment building. Is this the correct structure? and would there be an issue with rents collected by the management company?
@topsolutionsinc9371
@topsolutionsinc9371 7 месяцев назад
Thanks for the confirmation Toby ✅
@TobyMathis
@TobyMathis 7 месяцев назад
Very welcome
@mnotlyon
@mnotlyon 7 месяцев назад
Seriously? you wanna put it into a C corp? Now, all of the income is taxable at corp rates, and then taxable when you take a profit (wages). Sure, you can put some in the 401k, but then it's taxable again on withdrawal. Instead, I put most of my real estate into a ROTH. Now it's tax free for life. The down side is you can't put real estate into your ROTH that you already own. IMO, ROTH is the only tax advantaged account that makes since for real estate. All of the others give you an advantage now, but hose you when it's time to withdrawal. If not held in a ROTH, I'd rather hold in an LLC where I can use the depreciation to my advantage.
@usaokusa
@usaokusa 4 месяца назад
Why do you have to do that way? Why not just put rental income into normal brokage account then only 15% long term capital gain or even lower if you don’t have much income in the future? I don’t understand why people do thing doesn’t make sense
@robwhalen2364
@robwhalen2364 7 месяцев назад
Awesome!
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